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B-207251 1 (1982-11-16)

handle is hein.gao/gaobadksh0001 and id is 1 raw text is: THE COMPTROLLER GENERAL E CISION OF THE UNITED STATES WASHINGTON. D.C. 2054e &NITE~ FILE: B-207251 DATE: November 16, 1982 MATTER OF: Eugene Drexler DIGEST: Claim against Small Business Administration (SBA) for attorney fees earned in preparing contractor's termination settlement agreement, which is based on SBA's allowing such fees as part of settlement, is denied since claimant had no privity of contract with SBA and his recourse is against his client. SBA's acceptance of such costs as allowable settle- ment expense imposed no obligation on SBA to insure money paid to contractor is disbursed in any particular way. In any event, claim is precluded by the Assignment of Claims Act of 1940. Eugene Drexler has submitted a claim for payment for legal services rendered to Quadratech Research Corporation in connection with the preparation, presentation and nego- tiation of a contract termination settlement with the Small Business Administration (SBA). Drexler states that Quadratech went out of business before paying the full amount owed him and that since the termination settlement included a sum for legal fees, he should have been paid by SBA from that sum. For the reasons discussed below, we conclude that Drexler has no valid claim against the Government with respect to this matter. In 1976, the U.S. Marine Corps entered into a contract with SBA which, in turn, subcontracted (No. SBA2-10-8(a)- 76C-191) the requirement to Quadratech under section 8(a) of the Small Business Act, 15 U.S.C. § 637(a) (Supp. IV 1980). SBA extended advance payments to Quadratech in the amount of $250,000. This was placed in a special bank account requiring the signatures of representatives of

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